Humana sued for using AI to deny seniors rehabilitation care
Health insurer Humana is accused in a class-action lawsuit of using an AI algorithm to systematically deny rehabilitation care to Medicare Advantage patients, despite recommendations from their doctors. The lawsuit, filed on December 12, 2023, alleges that the AI tool restricted medically necessary care. This is the second major health insurer to face legal action over its use of AI to deny care.
- Company involved
- Humana
9 source articles · read the reporting →
Judge rules lawsuit over UnitedHealth’s AI care denials can move forward - STAT
The system denied necessary medical care to Medicare Advantage beneficiaries.
- Company involved
- UnitedHealth Group
1 source article · read the reporting →
California EDD's automated fraud detection wrongly suspended 600,000 legitimate unemployment claims
In January 2021, the California Employment Development Department used Thompson Reuters automated batch review software to flag 1.1 million unemployment claims as potentially fraudulent. EDD stopped payments on those claims without prior notice. Later, over 600,000 were confirmed as legitimate after claimants used ID.me to verify their identity. The incident highlights the trade-off between fraud prevention and timely benefit access.
- Company involved
- California Employment Development Department (EDD)
- AI system involved
- Thompson Reuters Automated Batch Review
7 source articles · read the reporting →
EvenUp AI errors in personal injury demand letters lead to scrutiny
EvenUp, a legal tech startup valued at $1 billion, uses AI to draft personal injury demand letters. Former employees revealed that the AI system frequently makes errors, including missing injuries and fabricating medical conditions. The company defends its hybrid approach with human oversight, but critics allege overpromised AI capabilities.
- Company involved
- EvenUp
6 source articles · read the reporting →
Swedish welfare agency's AI system flags marginalized groups for fraud investigations
Försäkringskassan, Sweden's Social Insurance Agency, uses an AI risk-scoring system to flag welfare applicants for fraud investigations. The system disproportionately targets women, individuals with foreign backgrounds, low-income earners, and those without university degrees, according to an investigation by Lighthouse Reports and Svenska Dagbladet. Amnesty International has called for the system to be discontinued, citing violations of the right to equality and non-discrimination.
- Company involved
- Försäkringskassan (Swedish Social Insurance Agency)
6 source articles · read the reporting →
Center for Investigative Reporting Sues OpenAI, Microsoft Over Copyright
The Center for Investigative Reporting, publisher of Mother Jones and Reveal, has filed a lawsuit against OpenAI and Microsoft in federal court, alleging the companies used its copyrighted articles without permission or compensation to train their AI products. The nonprofit argues that the AI-generated summaries of its stories threaten journalism and violate the Copyright Act and the Digital Millennium Copyright Act. The case is pending in the U.S. District Court for the Southern District of New York.
- Company involved
- OpenAI and Microsoft
6 source articles · read the reporting →
CBP One app strands migrants in Mexico, aids organised crime, says HRW
The US Customs and Border Protection's CBP One app, which is mandatory for asylum seekers, offers only 1,450 appointments per day while border arrivals average 7,240. Human Rights Watch reports that this digital metering leaves migrants stranded in Mexico, vulnerable to kidnapping and extortion by organised crime groups. The report alleges that the app enriches criminal cartels and that exceptions for imminent threats are often ignored.
- Company involved
- US Customs and Border Protection
- AI system involved
- CBP One
10 source articles · read the reporting →
Audit of RisCanvi finds biases and reliability issues in criminal justice system
Eticas conducted an adversarial audit of RisCanvi, an AI risk assessment tool used in Catalonia's criminal justice system. The audit uncovered biases in risk classifications against specific demographics and significant reliability issues. The findings call for fairer practices in criminal justice AI.
- Company involved
- Catalonia's criminal justice system
- AI system involved
- RisCanvi
4 source articles · read the reporting →
Tennessee's TennCare Connect algorithm illegally denied thousands Medicaid benefits
A U.S. District Court judge ruled that Tennessee's TennCare Connect system, built by Deloitte for over $400 million, illegally denied thousands of low-income residents and people with disabilities Medicaid and disability benefits due to programming and data errors. The system automatically terminated coverage without properly considering eligibility for all available programs. A class action lawsuit filed in 2020 resulted in the ruling.
- Company involved
- TennCare (Tennessee Medicaid)
- AI system involved
- TennCare Connect
10 source articles · read the reporting →
Deloitte software glitches wrongly remove Texans from Medicaid
Advocacy groups filed a complaint with the Federal Trade Commission alleging that Deloitte's eligibility software, TIERS, used by Texas Medicaid, wrongly disenrolled qualified recipients due to glitches. Nearly 1.8 million Texans lost coverage after the pandemic pause ended, with many errors attributed to procedural issues but some linked to system malfunctions. Deloitte denies the claims, while the state says it restored care for at least 90,000 people. The FTC has not yet responded to the complaint.
- Company involved
- Texas Health and Human Services Commission
- AI system involved
- TIERS
6 source articles · read the reporting →
Tyrone Walker v. Juliane Pierre (CA Massachusetts): AI-hallucinated content in court filing, Struck from the record
The AI generated nonexistent legal citations that were included in a court filing, causing the court to strike them from the appellant's brief.
1 source article · read the reporting →
Pega's Hidden AI Tool Listens To US Bank Calls, Suit Says - Law360
The system secretly recorded customer service calls, affecting bank customers.
- Company involved
- U.S. Bancorp
1 source article · read the reporting →
New Records Show Medicare WISeR AI Prior Authorization Model Causing Inappropriate Denials of Care - Medicare Rights Center
The system denied or delayed prior authorization for medical procedures, affecting Medicare beneficiaries in six states.
- Company involved
- Centers for Medicare & Medicaid Services
- AI system involved
- WISeR
1 source article · read the reporting →
TransUnion AI tenant screening denied 75-year-old man apartment due to mistaken littering conviction
Chris Robinson, then 75, applied for a senior living apartment in California. The property manager used an AI screening program from TransUnion, which assigned him a low score based on a mistaken conviction for littering that belonged to a different person with the same name in Texas. Robinson lost the apartment and his application fee. A federal class-action lawsuit against TransUnion moved toward a $11.5 million settlement in 2023.
10 source articles · read the reporting →
Security Health Plan used AI to cut off nursing home care for 85-year-old woman
Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.
- Company involved
- Security Health Plan
- AI system involved
- nH Predict
1 source article · read the reporting →
Ninth Circuit Sanctions Attorneys Over AI-Hallucinated Legal Briefs
The Ninth Circuit sanctioned immigration attorneys from Sethi Law Group after they filed briefs containing AI-generated false cases and quotations. The court imposed monetary sanctions, a six-month suspension from Ninth Circuit practice, and referred the matter to the California State Bar. The court also required future filings to disclose AI use and certify that all citations were verified. The case is Lnu v. Blanche.
- Company involved
- Sethi Law Group
2 source articles · read the reporting →
Mississippi Judge Removes All Attorneys Over AI-Hallucinated Citations
In Withers v. City of Aberdeen, a contract dispute, both sides' attorneys submitted briefs containing fabricated case citations generated by AI tools. The court identified six non-existent citations and sanctioned all four attorneys, revoking pro hac vice admissions, imposing fines, and referring them to state bars. The drafting attorneys had used AI research and drafting tools without verifying outputs, while local counsel signed filings without review. The ruling emphasises that attorneys cannot delegate verification duties to AI and that ignorance of AI risks is no defence.
- AI system involved
- First Drafts
2 source articles · read the reporting →
Arizona Unemployment Applicants Required to Submit Facial Recognition
People applying for unemployment benefits in Arizona must verify their identity via facial recognition software provided by ID.me. If the system fails to match a selfie to a photo ID, applicants can be denied benefits unless they successfully complete a video chat with a referee. A class-action lawsuit filed in June 2021 alleges that the practice violates due process rights and discriminates against people of colour.
- Company involved
- Arizona Department of Economic Security
- AI system involved
- ID.me
1 source article · read the reporting →
OpenClaw vulnerabilities enable data leakage and prompt injection
In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.
- AI system involved
- OpenClaw
6 source articles · read the reporting →
Herbert Brooks v. Lowes Home Centers LLC (W.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; CLE
Generated a legal brief with hallucinated case law, filed in court.
- AI system involved
- Claude
1 source article · read the reporting →
CommNV vs Uprise (Nevada DC): AI-hallucinated content in court filing, Monetary Penalty OR Order to volunteer and teach about AI…
The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Christopher Day
1 source article · read the reporting →
New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com
The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.
- Company involved
- Meta Platforms
- AI system involved
- Meta AI-enabled Ray-Ban and Oakley smart glasses
1 source article · read the reporting →
Sue Neill-Fraser: AI hallucinations in a parole decision (Tasmania)
The Parole Board imposed a condition preventing Susan Neill-Fraser from communicating with the media to claim innocence.
- Company involved
- Tasmania Parole Board
1 source article · read the reporting →
Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
1 source article · read the reporting →
